Gas Tax Holiday Not Going to Lower Prices


	Gas Tax Holiday Not Going to Lower Prices

DrCat2013

6-29-2008 8:47 PM

90 views

DrCat2013 says:

AND it would take money away from the Highway Trust Fund.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/dd9bf1a2-cadf-4a0b-8fdd-f05eb234671c/1544C48D-2133-4716-BC03-6ACA64721197/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.factcheck.org/gas_price_fixes_that_wont.html" href="http://www.factcheck.org/gas_price_fixes_that_wont.html" style="font-size: 11px;">www.factcheck.org</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.factcheck.org/gas_price_fixes_that_wont.html"><FONT size="3" face="Arial">Hillary Clinton and John McCain are offering overburdened motorists a federal "gasoline tax holiday." But economists say that the proposal is unlikely to actually lower the price of gasoline. McCain's plan would essentially give federal funds to oil refineries, while the net effect of Clinton's plan probably wouldn't be much at all, although it would create a lot of new administrative work.</FONT></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.factcheck.org/gas_price_fixes_that_wont.html"><FONT size="3">According to the basic principles of supply and demand, c</FONT><FONT size="3">utting the price of an item causes people to buy more of it.</FONT></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.factcheck.org/gas_price_fixes_that_wont.html">when something is priced too low, consumers will buy it faster than it can be manufactured, which leads to shortages. </blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.factcheck.org/gas_price_fixes_that_wont.html">
For gasoline, this means that cutting the price</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.factcheck.org/gas_price_fixes_that_wont.html">will likely stimulate demand for more gas</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.factcheck.org/gas_price_fixes_that_wont.html">With the supply of gasoline pretty much fixed (at least in the short term), the increased demand triggered by the price cut will lead consumers to bid up the price of gas.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.factcheck.org/gas_price_fixes_that_wont.html">Society of Civil Engineers <A href="http://denver.bizjournals.com/denver/prnewswire/press_releases/national/District_of_Columbia/2008/04/15/DC19560">estimates</A> that the three-month gas tax holiday could cost as much as $8.5 billion. </blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/1544C48D-2133-4716-BC03-6ACA64721197/blog/" title="blog or email this clip"><img src="http://content9.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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